Chile and Paraguay report divergent economic shifts

Chile is implementing economic reforms under the administration of José Antonio Kast. Following the Senate's approval of the National Reconstruction Law, the government aims to stimulate the economy by reducing taxes, cutting regulations, and increasing legal certainty for investors. This shift follows a period of economic stagnation where annual growth fell from a 4% average (1990–2013) to 1.1% since 2014. Observers note that increased public spending, rising debt, and expanded bureaucracy have contributed to these challenges.

In Paraguay, President Santiago Peña reported that the country has maintained an annual economic growth rate exceeding 4% over the last three years. Peña stated that this growth has outpaced the rest of the region and has contributed to a significant reduction in poverty, which dropped from 24% to 16%. These economic trends and social progress metrics have been documented by the World Bank.